Fintech giant,Stripe, is laying off 300 employees, according to a leaked internal memo reported on Tuesday by Business Insider.
The job cuts will primarily affect workers in product, engineering, and operations roles, and despite the layoffs, Stripe plans to expand its overall workforce.
Chief People Officer Rob McIntosh stated that the company intends to grow its headcount by 17%, aiming to reach approximately 10,000 employees by the end of the year. With the current workforce estimated at 8,550, the planned growth would result in the addition of over 1,400 new hires.
McIntosh explained the layoffs were part of a broader effort to align personnel with the company’s strategic goals. “It became clear there were several team-level changes needed to ensure we had the right people in the right roles and locations to execute against our plans,” he said.
This is not the first time Stripe has cut jobs. In November 2022, the company announced it would lay off 14% of its workforce, impacting roughly 1,120 employees. At the time, the decision was attributed to over-hiring during a period of rapid growth.
Stripe has been widely expected to pursue an initial public offering (IPO) but has yet to take that step. Instead, the company has continued raising funds privately and conducting tender offers to provide liquidity to employees.
As of July 2024, Stripe was valued at $70 billion, a sharp drop from its $95 billion valuation in 2021. Despite the valuation decline, the company remains one of the most prominent players in the global fintech sector.
Stripe’s latest workforce adjustments come as the fintech industry faces broader challenges, including regulatory scrutiny and tightening funding conditions, and while the company’s decision to reduce staff in some areas signals a focus on operational efficiency, its ambitious hiring plans indicate confidence in its long-term growth strategy.
